Andhra Bank price band at Rs 82-90

The price band for Andhra Bank's follow-on public issue of equity shares of Rs 10 each for cash has been fixed at Rs 82 to Rs 90. The minimum bid size for the issue is 75 shares, the bank stated in a press release.

The issue, which will comprise the sale of 85 million new shares, will open on January 16 and close on January 20, 2006. Book Running lead managers to the issue are SBI Capital Markets Ltd, Citigroup Global Markets India Pvt Ltd, DSP Merrill Lynch Ltd, ENAM Financial Consultants Pvt Ltd, and Kotak Mahindra Capital Company Ltd.

The share of Andhra Bank on Friday closed at Rs 98.60 against Thursday's closing of Rs 101.35 on NSE. With its follow-on public issue, the bank expects to raise Rs 850 crore to fund its growth. The government's stake in the bank after the issue will drop to 51.55 per cent from the current 62.5 per cent.